Are you looking for good insurance for your rental? If you are a tenant, home insurance is a legal obligation when you move into a home. What are the tenant's obligations? What are the essential guarantees for a rental and how to find adequate insurance? InsuranceInfo2023 answers your questions!
Summary:
- Is tenant home insurance compulsory?
- What is rental risk insurance?
- What are the guarantees of home insurance for tenants?
- Multi-risk tenant home insurance
- How much does tenant home insurance cost?
- What is default tenant insurance?
- How to find the best rental home insurance?
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| Tenant home insurance: what are the Obligations? |
Is tenant home insurance compulsory?
The tenant is responsible for any damage he may cause to the building during the rental period. The law, therefore, obliges all tenants – of furnished or unfurnished accommodation – to take out home insurance to guarantee compensation in the event of damage caused to third parties.
Home insurance taken out by a tenant covers, at a minimum, rental risks. It is mainly:
- Water damage
- Of an explosion
- From a fire
If you move into or move into a new rental property, you must therefore think about this coverage, otherwise you will not be able to sign your rental lease.
However, there are two exceptions to this rule:
- As part of a seasonal rental
- As part of a staff accommodation
In any case, you will have to compensate the owner of the accommodation if you are responsible for a claim!
What is rental risk insurance?
Rental risk insurance refers to tenant home insurance with a minimum of home guarantees. This insurance ultimately corresponds to what is known as rental civil liability.
This insurance covers damage caused during the rental. However, in the event of a claim, the insurer will only cover the damage caused to the tenant's accommodation and not :
Damage to personal property and equipment of the tenant;
Material damage caused to neighbors
- Rental risk guarantee and unpaid rent
The rental risk guarantee, or GRL, was a guarantee put in place by the State, to replace unpaid rent insurance. However, the rental risk guarantee has no longer existed since 2016. It was replaced by the Visale device.
This guarantee grants a free deposit to people looking for a rental. If the tenant no longer pays the rent, the landlord will be compensated by Action Logement who will then request reimbursement from the tenant.
In the case of free hosting (occupying for free), you need to know if the host lives with the host. In this case, it is up to the main tenant or the owner (depending on the situation) to take out housing insurance. If the guest lives alone, he must take out home insurance himself.
What are the guarantees of home insurance for tenants?
- Tenant home insurance coverage
If you are held liable for damage caused to a third party, you will not be compensated by the insurance company if you have only taken out rental risk insurance!
To be covered for these types of damage caused to neighbors, you must purchase neighbors and a third-party recourse guarantee. It provides reimbursement for material and physical damage caused to your neighbors following an accident occurring at your home. However, these warranties do not cover your personal property.
Even if it is systematically offered at the same time as rental liability, this option must be taken out separately. Indeed, it is generally included in a multi-risk home insurance contract (MRH).
Multi-risk tenant home insurance
Multi-risk insurance for tenants is the formula offering the most complete coverage against damage. This home insurance policy is flexible. It provides better protection and a better level of compensation to the tenant, especially for damage that he could cause or suffer.
In addition to the rental civil liability guarantee (or rental risks), multi-risk insurance compensates the insured in the event of:
- Theft, burglary, vandalism;
- Natural and technological disasters;
- Glass breakage;
- Riots, attacks, terrorism.
In addition, the following options can be subscribed according to the needs and budget of the tenant:
Guarantee recourse of neighbors and third parties;
Private life civil liability cover:
for an extension of cover for damage in the context of private and family life;
Property damage guarantees such as water damage, fire, electrical damage, glass breakage, theft, attacks, and natural disasters. They are provided for in most contracts ;
Optional guarantees such as home assistance, legal protection, or even school insurance.
Malynx tip!
Pay close attention to the guarantees contained in a multi-risk home insurance contract and particularly to the exclusions of guarantees, to be well compensated in the event of a claim!
How much does tenant home insurance cost?
According to our 2022 housing barometer, a tenant pays an average of €114 per year * in contributions for their home insurance. Depending on the type of rental, the premium will not be the same:
- Furnished rental: €104/year *;
- Unfurnished rental: €125/year *.
However, the price of home insurance varies depending on several factors:
The area of the rented accommodation;
The contract subscribed: a multi-risk contract is more expensive because of the additional guarantees it contains;
- The profile of the tenant:
some insurances offer contracts adapted to the small budget of a student. On average, the premium for a student tenant does not exceed €100/year *;
The value of movable property;
- Location:
if your rental is located in a department where bad weather strikes regularly, your contribution may be higher. Housing located in a high-risk area is more expensive to insure.
- Methodology:
Results were obtained on a sample of 224,480 home insurance premiums clicked by InsuranceInfo2023.
What is default tenant insurance?
The lack of tenant home insurance designates the absence of a subscription to a home contract on the part of the tenant.
The tenant must issue a certificate of insurance at the time of signing the lease, or at the latest when handing over the keys. In addition, the landlord of your accommodation may ask you for a certificate each year to ensure that the insurance taken out by the tenant is in compliance.
What happens in the event of an insurance default?
In the event of a claim, you will then have to compensate the owner of your accommodation at your expense without being able to take legal action. Similarly, if your landlord asks you to provide him with an insurance certificate each year, you must be able to present it or your rental contract will be terminated.
In the event of a lack of insurance, the lessor reserves the right to terminate the lease.
- Rental insurance is taken out by the owner
The landlord can also take out home insurance for his tenant himself. The price of the housing insurance will then be passed on to the amount of the charges paid by the tenant. However, this cover will only apply to the property of the owner and not to that of the tenant.
The owner can apply a maximum increase of 10% on the price of home insurance as compensation for the steps he has taken on your behalf.
How to find the best rental home insurance?
Thanks to the InsuranceInfo2023 comparator, fill out the home insurance simulation form by answering precisely the questions asked and instantly receive several home insurance quotes to compare.
On our comparator, a few minutes are enough to find out, free of charge and without obligation, your needs to offer you a list of quotes adapted to your profile.
Make real savings on your home insurance contracts and take advantage of broad coverage to protect your home without breaking the bank. Go to the home simulation form and let InsuranceInfo2023 guide you!
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